IREN $IREN ( ▲ 10.06% ) slid in postmarket trading Monday and is still under pressure Tuesday morning after the company revealed plans to sell new shares as part of a broader effort to refinance its debt. The bitcoin miner turned data center operator is moving forward with a registered direct offering, using the proceeds to repurchase up to $1.5 billion in convertible notes due in 2029 and 2030 with coupons of 3.5 percent and 3.25 percent.
How many shares get issued will depend on how many existing noteholders agree to sell their debt back. IREN is also issuing $2 billion in new convertible senior notes in a private offering, split between 2032 and 2033 maturities. Bloomberg reports the 2032 notes are being targeted for a coupon between 0 percent and 0.25 percent, while the 2033 notes may carry a coupon between 0.5 percent and 1 percent, with both expected to come with conversion premiums of 25 to 30 percent.
The refinancing push comes as IREN ramps up investment to meet soaring demand for AI compute and power infrastructure. Last month, the company secured a nearly $10 billion deal with Microsoft to provide compute at a major Texas data center campus. IREN was also added to Wedbush analyst Dan Ives’ list of the top 30 beneficiaries of the AI boom.